Edelweiss Low Duration Fund

 
OVERVIEW

Edelweiss Low Duration Fund is an open ended low duration debt scheme to generate returns commensurate with risks of investing in a short duration portfolio of money market instruments, debt securities, InvITs, REITS and other permissible securities.


However, there can be no assurance that the investment objective of the Scheme will be realized

 

FUND INFORMATION
  • Fund Facts
  • Asset Allocation
  • Options
  • Load Structure
  • Applicable NAV
  • Fees & Expenses

Name: Edelweiss Low Duration Fund

Scheme Type: An open ended low duration debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 6 months and 12 months.

Investment Objective: The investment objective of the Scheme is to generate returns commensurate with risks of investing in a short duration portfolio of money market instruments, debt securities, InvITs, REITS and other permissible securities.
However, there can be no assurance that the investment objective of the scheme will be realised.

Benchmark Index: CRISIL Liquid Fund Index.

Fund Manager : Mr. Rahul Dedhia and Mr. Gautam Kaul

Asset Allocation

Under normal circumstances, it is anticipated that the asset allocation shall be as follows:

Asset Class Allocation Indicative Allocation(% of total assets) Risk Profile
Debt Securities and Money Market Instruments including Securitized Debt & Interest Rate Derivatives 0% - 100% Low To Medium
Units of InvITs/REITs 0% - 10% Medium To HIgh

Macaulay Duration of the scheme portfolio will be between 6 months and 12 months under normal market conditions.

Debt securities include government securities (G-Sec), debt issued by states (SDL & UDAY) & municipal corporations, debt issued by PSU, PFI and private entities, securitized debt, interest rate derivatives and other permissible debt securities.

Money market instruments include Commercial Papers, Commercial Bills, Treasury Bills, Collateralized Borrowing & Lending Obligations (CBLO), government securities having unexpired maturity up to one year, Call or Notice Money, Certificate of Deposits, Usance Bills, Repo (with approved government & Corporate Debt Securities as collateral), and any other like securities as specified by the RBI from time to time.

Floating rate debt securities are securities with coupon rate which are generally linked to an external benchmark. The coupon rate is generally reset periodically.

Further,

  • The Scheme may invest in units of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs). The Scheme will not invest more than 10% of the net assets the Scheme in InvITs and REITs and not more than 5% of the net assets of the Scheme in InvITs and REITs of any single issuer.
  • Securitized debt will be up to 50% of net assets at the time of investment. The scheme shall not invest in foreign securitized debt.
  • The Scheme can invest up to 50% of its net assets in foreign debt securities.
  • The Scheme shall not engage in stock lending.
  • The Scheme may take exposure into fixed income derivatives up to 50% for hedging and portfolio rebalancing purpose.
  • The cumulative gross exposure through debt, derivative, REITs and InvITs positions will not exceed 100% of the net assets of the Scheme. Cash, cash equivalent with residual maturity up to 91 days will be treated as not creating any exposure.
Plans / Options / Facilities:

The Scheme has two plans: Super Institutional Plan and Direct Plan.

Each plan offers:


1. Growth Option 2. Dividend Reinvestment 3. Dividend Payout 4. Daily, Weekly, Fortnightly, Monthly & Annual Dividend Reinvestment, 5. Weekly, Fortnightly, Monthly & Annual Dividend Payout


Growth: Under the growth option no dividend will be declared.


Dividend: Under the dividend option, a dividend may be declared by the Trustee, at its discretion, from time to time (subject to the availability of distributable surplus as calculated in accordance with the Regulations).

Minimum Subscription / Redemption amount:

Minimum initial application amount Minimum additional application amount Minimum redemption amount / no. of Units Minimum SIP amount / no. of Installments
₹ 5,000/- per application and in multiples of ₹ 1/- thereafter. ₹ 1000/- per application and in multiples of ₹ 1/- thereafter. ₹ 1,000/- or 1 Unit ₹ 1,000/- and 6 Installments
Load Structure

Entry Load: Nil

Exit Load: Nil

Applicable NAV

The Cut-off time for the Scheme is 3.00 p.m. , and the Applicable NAV will be as under:

Purchase

  • Where the application is received upto 3.00 pm with a local cheque or demand draft payable at par at the place where it is received, with amount less than Rs. 2 lakhs – closing NAV of the day of receipt of application;
  • Where the application is received after 3.00 pm with a local cheque or demand draft payable at par at the place where it is received, with amount less than Rs.2 lakhs – closing NAV of the next Business Day;
  • Where the application is received with a local cheque or demand draft payable at par at the place where it is received, with amount equal to or more than Rs. 2 lakhs irrespective of the time of receipt of application, the closing NAV of the day on which the funds are available for utilisation shall be applicable.

Applicability of NAV for the Scheme with an amount equal to or more than Rs. 2 lakhs:
a) For allotment of units in respect of purchase in the Scheme, the following needs to be complied with:

  • Application is received before the applicable cut-off time.
  • Funds for the entire amount of subscription/purchase as per the application are credited to the bank account of the respective Scheme before the cut off time.
  • The funds are available for utilization before the cut-off time without availing any credit facility whether intra-day or otherwise, by the respective Scheme.

b) For allotment of units in respect of switch-in to the Scheme from other schemes, the following needs to be complied with:

  • Application for switch-in is received before the applicable cut-off time.
  • Funds for the entire amount of subscription/purchase as per the switch-in request are credited to the bank account of the respective switch-in Scheme before the cut-off time.
  • The funds are available for utilization before the cut-off time without availing any credit facility whether intra-day or otherwise, by the respective switch-in Scheme or Plans or options thereunder.

The above will be applicable only for cheques / demand drafts / payment instruments payable locally in the city in which a Designated Collection Center is located. No outstation cheques will be accepted.

Note: For the avoidance of doubt, where applications are received for an amount of less than Rs. 2 Lakhs (Two Lakh Rupees) on a non-Business Day the closing NAV of the next Business Day shall be applicable.

For Redemption

  • Where the application is received upto 3.00 p.m. - the closing NAV of the day immediately preceding the next Business Day ; and
  • Where the application is received after 3.00 p.m. - the closing NAV of the next Business Day. Note: In case the application is received on a Non-Business Day, it will be considered as if received on the Next Business Day.

For Switches: Valid applications for ‘Switch-out’ shall be treated as applications for Redemption and valid applications for ‘Switch-in’ shall be treated as applications for Purchase, and the provisions of the Cut-off time, Business Day and the Applicable NAV mentioned in the relevant SID as applicable to Purchase and Redemption shall be applied to the ‘Switch-in’ and ‘Switch-out’ applications, respectively.

Fees & Expenses

As per the SEBI Regulations, the maximum recurring expenses including the investment management and advisory fee that can be charged to the Scheme shall be subject to a percentage limit of daily net assets as given in the table below. Subject to the SEBI Regulations, expenses over and above the prescribed ceiling will be borne by the AMC.

First Rs. 100 Crores Next Rs. 300 Crores Next Rs. 300 Crores Over Rs. 700 Crores
2.25% 2.00% 1.75% 1.50%

*of the daily net assets

In addition to the above, a charge of 20 bps on the daily net assets and a proportionate charge in respect of sales beyond T-15 cities subject to maximum of 30 bps on daily net assets will be charged to the scheme.

With Additional expenses, incurred towards different heads mentioned under regulations 52(2) and 52(4), not exceeding 0.20 per cent of daily net assets of the Scheme.

However, such additional expenses will not be charged if exit load is not levied/ not applicable to the Scheme.

Good and Service tax on investment and advisory fees will be charged to the Scheme in addition to the maximum limit of TER as prescribed in Regulation 52.

Actual Current Recurring Expenses
 

This product is suitable for investors who are seeking*:
Riskometer
  • Optimal returns over short term.
  • Investments primarily in a mix of short term debt and money market instruments.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Investors understand that their principal will be at Moderately Low risk.
 
 
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